In recent news, the Lok Sabha has introduced the latest versions of three labor codes namely, Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020, and Occupational Safety, Health and Working Conditions Code Bill, 2020. This article aims to provide a facts oriented break-down of each of these bills and their key features.
Industrial Relations Code Bill, 2020
This bill has raised the requirement for a standing order to over 300 workers, meaning that industrial establishments with up to 300 workers will no longer need to furnish a standing order. The Industrial Employment (Standing Orders) Act, 1946 previously obliged employers with 100 or more workers to define their employment conditions and workmen conduct rules via standing orders/services rules. The new provision will be applicable for every industrial establishment employing 300 or more workers.
The bill also introduces new conditions for carrying out a legal strike, including that no person employed in any industrial establishment shall go on strike without a 60-day notice and during tribunal proceedings. This applies to all industrial establishments. Additionally, the bill proposes to establish a re-skilling fund for training retrenched workers, funded by the employer.
Concerns about the Industrial Relations Code Bill, 2020
Critics argue this bill could dilute labor rights for workers in small establishments with less than 300 workers because it allows companies to introduce arbitrary service conditions. They also worry it grants employers too much flexibility in terms of hiring and firing, enabling them to dismiss employees for alleged misconduct and retrenchment for economic reasons. Critics also claim the new conditions for strikes make it nearly impossible for workers to carry out a legal strike.
Social Security Code Bill, 2020
This bill proposes a National Social Security Board which will recommend schemes for different sections of unorganised workers, gig workers, and platform workers to the central government. It also mandates that aggregators employing gig workers contribute 1-2% of their annual turnover for social security, though this contribution cannot exceed 5% of the amount payable by the aggregator to gig and platform workers.
Occupational Safety, Health and Working Conditions Code Bill, 2020
This bill defines inter-state migrant workers as workers who have come on their own from one state and obtained employment in another state, earning up to Rs. 18,000 a month. This proposed definition distinguishes from the present definition of only contractual employment. The bill has also dropped the earlier provision for temporary accommodation for workers near worksites, instead proposing a journey allowance, a lump sum amount of fare to be paid by the employer for to and fro journey of the worker to their native place from the place of their employment.
While these three bills offer reforms and provisions aimed at supporting India’s vast working population, they have also drawn criticism from various sections over concerns of diluting workers’ rights. The ultimate impact of these codes will become clearer as they are implemented and their provisions are put to practice.
